Introduced Version




SENATE BILL No. 381

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DIGEST OF INTRODUCED BILL



Citations Affected: IC 20-12-22.5.

Synopsis: Repayment of student loans. Provides that an individual who: (1) obtained student loans to pay for postsecondary education from an institution located in Indiana; and (2) resides and works in Indiana after graduating from a postsecondary institution; may enter into an agreement with the state student assistance commission to have the commission assume the repayment of 25% of the principal and interest due on the student loan each year the individual resides and works in Indiana. Limits the repayment program to those students who graduate after June 30, 2006.

Effective: July 1, 2006.



Rogers


    January 11, 2006, read first time and referred to Committee on Education and Career Development.




Introduced

Second Regular Session 114th General Assembly (2006)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
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SENATE BILL No. 381


    A BILL FOR AN ACT to amend the Indiana Code concerning education.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 20-12-22.5; (06)IN0381.1.1. -->     SECTION 1. IC 20-12-22.5 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2006]:
     Chapter 22.5. Student Loan Repayment for Eligible Indiana Residents
    Sec. 1. As used in this chapter, "commission" refers to the state student assistance commission established by IC 20-12-21-4.
    Sec. 2. As used in this chapter, "eligible individual" refers to an individual who:
        (1) obtains one (1) or more student loans to attend a qualified institution located in Indiana;
        (2) graduates after June 30, 2006, from a qualified institution located in Indiana; and
        (3) following graduation, resides and is employed in Indiana.
    Sec. 3. As used in this chapter, "qualified institution" has the meaning set forth in IC 20-12-21.1-1(e).
    Sec. 4. (a) The commission shall enter into a written agreement

with an eligible individual that provides that for each year:
        (1) the eligible individual resides; and
        (2) during which the eligible individual is employed;
in Indiana, the commission shall assume the repayment of twenty-five percent (25%) of the principal and interest due on any student loans the eligible individual received to attend a qualified institution, following the eligible individual's graduation from the qualified institution.
    (b) An eligible individual may annually enter into an agreement under this section for each year the eligible individual resides and is employed in Indiana following the eligible individual's graduation from a qualified institution.
    Sec. 5. The commission may adopt rules under IC 4-22-2 to carry out this chapter. Rules adopted under this section may require an eligible individual to provide proof that the eligible individual resides and is employed in Indiana.